LEHI, Utah – Mattress and sleep brand Purple Innovation reported a 7.2% increase to net sales of $186.4 million compared with net sales of $173.8 million in the same quarter 2020 for the quarter ended Dec. 31.

The company posted a net loss of $27.8 million in the quarter compared with a loss of $73.5 million in the same quarter of 2020.

In the fourth quarter, the company said wholesale revenue climbed 35.9% while its direct-to-consumer revenue decreased 4%. Purple said its wholesale business was favorably impacted by partner expansion and a reopening of retail doors. DTC net revenues declined due to lower e-commerce revenue partially offset by growth in Purple retail showroom revenue driven by the addition of 19 showrooms in 2021.

For the year, the company reported net sales of $726 million, a 12% increase over net sales of $648.5 million for fiscal 2020. Net income for the year was $3.9 million, compared with a net loss of $229.8 million in 2020.

The company said its net revenue for the year was impacted by production issues experienced in the second and third quarters of 2021, as its ability to manufacture and deliver products to both DTC and wholesale customers was interrupted.

In addition to the earnings report, the company announced it had named Rob DeMartini as CEO. He had been serving as an interim in the position since December.

“Following several years of hyper growth and increased investments to support current and future expansion, we are now focusing on right-sizing our operations, improving our execution and refining our strategies to drive profitable growth in the current market environment,” said DeMartini. “This work is already underway, and we are making good progress, but we are still in the early stages of building the framework for strong operational maturity and accountability.

“Since joining Purple, I have been continually impressed by the passion and commitment exhibited throughout the organization and the wealth of experience across our teams particularly in research and development. The foundation that is in place is adding to my conviction in this business and my confidence in our ability to achieve our near- and long-term objectives.”

I’m Sheila Long O’Mara, executive editor at Furniture Today. Throughout my 25-year career in the home furnishings industry, I have been an editor with a number of industry publications and spent a brief stint with a public relations agency where I worked with some of the industry’s leading bedding brands. I rejoined Furniture Today in December 2020 with a focus on bedding and sleep products. It’s a homecoming for me, as I was a writer and editor with Furniture Today from 1994 until 2002. I’m happy to be back and look forward to telling the important stories impacting bedding retailers and manufacturers.

Sign up to get exclusive industry information delivered directly to your inbox.

© 2022 BridgeTower Media. All rights reserved.

Use of this website is subject to its Terms of Use | Privacy Policy | Your California Privacy Rights/Privacy Policy | Do Not Sell My Info/Cookie Policy

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.